Sales tax is not imposed on all goods and services, though. In Ohio, certain commodities like food, prescription medications, and medical supplies are exempt from paying sales tax. Additionally, some businesses, including non-profits and governmental bodies, are exempt from the Ohio CAT tax.
Commercial Activity Tax, sometimes known as Ohio CAT tax, is levied against companies who conduct business there. Businesses must submit and pay CAT tax if their yearly gross receipts are $150k or more. However, some businesses and organizations, including some non-profits, educational institutions, and religious organizations, are excluded from the rules.
There is no personal property tax in Ohio. However, businesses may be required to pay property taxes on their tangible personal property, including their real estate and pieces of machinery and equipment.
Depending on how much revenue a company makes in gross receipts, different Ohio CAT tax due dates apply. Businesses must submit and pay their CAT tax annually if their annual gross receipts are less than $1 million. Businesses that generate more than $1 million in annual gross revenue must file and pay their CAT tax on a quarterly basis.
And last, there is an 8% sales tax in Cuyahoga County, Ohio. This implies that $8 in sales tax must be paid for every $100 spent on taxable goods and services. Food and prescription pharmaceuticals are exempt from sales tax in Cuyahoga County, Ohio, just like they are in Clermont County, Ohio.
In conclusion, financial planning and budgeting require an awareness of sales tax and other taxes levied against individuals and businesses. To prevent fines and costs, it’s crucial to remember the exclusions and deadlines related to these taxes.